Power ministry to Launch Manufacturing Programme for Critical Equipment

February 3, 2021

A domestic manufacturing programme for critical power and renewable energy equipment will be launched by the ministry of Power in the Financial Year 2021. The programme has at an outlay of Rs 1,500 crore.

Manufacturing Zones under Atmanirbhar Bharat Package

  • This scheme was announced in the Union Budget.
  • It would set up the three manufacturing zones per year.
  • The three zones are divided into three categories:
  1. coastal,
  2. land-locked and
  3. hilly states.
  • The scheme would also call for the offers from the states to submit the applications in order to set up these zones.
  • All of the three selected zones would get Rs 500 crore each in order to development the manufacturing hubs.
  • The zone will also be given the open access to power supply in the selected states which are unable to supply cheaper electricity.
  • The states will also set up a Special Purpose Vehicle (SPV). SPV would be transferred to the private companies when they set up the manufacturing facilities.

How the states will be selected?

  • A committee would be select to decide which state offers the best facilities for these zones.
  • The selection criteria would be based on land and cheap infrastructure.
  • It would also look after the facilities such as electricity, sewage treatment, water etc.
  • Centre would also provide common infrastructure and testing facilities at these zones.

Equipment testing facility

  • The equipment testing facility for the power equipment will be set up by Central Power Research Institute (CPRI) .
  • While for the renewable equipment, testing facility will be  set up by the National Institute of Solar Energy (NISE) and National Institute of Wind Energy (NIWE).

Why it is being launched?

In September 2020, the Union power ministry had released a list 80 items which are imported despite having sufficient domestic capacity. Thus, these facilities are being set up with the aim of setting up the manufacturing of new-age equipment which are not available in Indian market.  Further, after the border clashes with China in Galwan valley of Ladakh, the Ministry of Power has also announced the import restrictions on equipment that are used for ‘power supply systems and network’ because of security threat and cyber-attacks. Thus, the setting of such facilities becomes significant.

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